The UK Government claims that the economy will grow in 2020 despite the CoronaVirus outbreak. Our figures show the economy will contract by 15%.
We are often surprised by statements and financial assessments coming out of Number 11 and the Bank of England, but their insistence that the economy will not shrink has to be one of the strangest we have heard for many years.
Our analysts at "Easy Loans" predict that the effects of the CoronoaVirus will hit the UK economy hard, and it will contract anywhere between 10%-15%.
It is already clear to see the fallout from CoronaVirus. Pubs are empty; restaurant bookings are down by 40%, significant events like Crufts have seen their attendances slashed in half. Flights are leaving airports with as little as 5% of the expected passengers onboard. The signals of a massive downturn are clear to see. It isn't credible for the Government to say that the economy will still grow.
Unfortunately, there is more to come. The gig economy has not yet taken a hit, but it is about to. Lenders are about to start pulling credit products from the market. Mortgages and insurance products are about to become much more expensive and therefore won't be sold in the quantities that they are currently.
Our own view is that unemployment is about to skyrocket, credit defaults and bankruptcies will be almost out of control. These are going to be some very dark times for the UK economy.
We will also see the new problem of "deflation" where prices start to fall. Many will cheer this at first, but then realise that this is a terrible thing for our economy. Why would someone buy a new car today if the price is going to be cheaper next week? The answer is that they wouldn't. This would have a knock-on effect on the people who work in the car plants. They will see sales fall and layoffs right across this and other industries.
We believe that the Government needs to be honest here; people need to know the truth. The truth is that this is very bad; people should cut back and plan their finances very carefully.
"Easy Loans" is a trading name of Quick Loans Ltd is registered in England and Wales. Authorised and regulated by the Financial Conduct Authority under registration number 763132
Offers of credit are only available to people over the age of 18
